The Fed increased rates by 25 basis point and brought the rate effective to 5%-5.25 while signaling a pause on rate hikes.
ET. However, the small-cap Russell 2000 posted a gain of 1.9%. The Innovator IBD 50 gained 0.8%.
The volume on the NYSE and the Nasdaq was higher than the same time Tuesday.
Crude oil fell nearly 4%, to $68.90 per barrel. The yield of the benchmark 10-year Treasury bill fell by 3 basis points, to 3.40%.
The Fed announced on Wednesday that it will "consider the cumulative tightening in monetary policies, the delays with which monetary policies affect economic activity and inflation and economic and financial development" when determining how much additional policy firming is appropriate to return the inflation rate to 2%.
Powell, Fed chair, said in a news conference that "ongoing assessments" are needed at each meeting to assess the current situation. The inflation rate is still above the 2% target, while the labor market remains high.
The ADP report released on Wednesday showed that the number of jobs added surpassed expectations by a large margin, with 296,000 new positions being created. ISM Services Index rose to 51.9, indicating that a part of the economy is in growth mode. Both numbers support the idea of rate increases after today.
The economy is still at risk from the continued weakness of regional banks and the fear over the debt ceiling. Treasury Secretary Janet Yellen stated on Tuesday that the economy may reach the debt ceiling by June 1.
CME FedWatch Tool indicates a mere 9.3% chance that a 25 basis point increase will occur in June. Powell's remarks can affect the markets. Brad McMillan of Commonwealth Financial Network's Chief Investment Office says that if the Fed head "stays focused" on inflation then it is hawkish. "If he speaks about the slowing of the economy and banking system, that will be dovish."
The April payroll report is the key to Friday's event.
Stocks moving today
After AMD's earnings on Tuesday, shares fell below the 50 day line. The chipmaker exceeded expectations but reduced its revenue forecast for the second quarter. AMD still expects a better growth rate in the second half, as the PC and server markets are strengthening.
Dow Jones Tech Leader and AMD Rival Intel (INTC), rose after a testing of the 200-day Moving Average.
According to IBD MarketSmith's chart analysis, Uber (UBER), broke out of the cup base at 37.68. After this week's earnings, the IBD Leaderboard option play and IBD50 stock are on track to have a six-day streak of winning.
CVS Health (CVS), despite its strong earnings, fell on the back of a lower profit outlook. Stock has been stagnant for several months.
Eli Lilly's (LLY), a drug manufacturer, reported that its Alzheimer trial treatment reduced cognitive decline in some conditions.
Shell (SHEL), and ConocoPhillips, (COP) both fell on Thursday as earnings were due.
After it released its earnings, Livent (LTHM), a lithium company, surged over the 50-day line. Albemarle shares (ALB), which will report earnings later today, are up. The stock is still well below the 50-day line.
Sunrun (RUN), Etsy(ETSY)and Qualcomm (QCOM) will also report their quarterly results following the close of the markets.
Dow Jones Stock in Focus
Apple (AAPL), which is due to report earnings on Thursday, rose. The shares are stretched and could face resistance at 176.